At January 1, 2016, ICN, Inc., was indebted to First Bank under a $480,000, 10% unsecured note. The note was signed January 1, 2012, and was due December 31, 2017. Annual interest was last paid on December 31, 2014. ICN was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement.

Insructions

First Bank agreed to reduce last year's interest and the remaining two years' interest payments to $23,110 each and delay all payments until December 31, 2017, the maturity date (Show all of your works including any calculations). Journals by debtors.